THE EFFECTS OF MATERIAL HANDLING ON PROFITABILITY OF AN ORGANIZATION: A CASE STUDY OF CHANDARIA INDUSTRIES NAIROBI

Abstract

Material handling main aim is to support the company operations with an uninterrupted flow of materials and services. This is achieved through detailed planning of the supply of materials, parts and components so that they are brought together at the right time and in the right worklocation. The study was guided by the following objectives; to determine the effect of materialstorage on profitability of an organization; to examine the impact of inventory management on profitability of an organization; to determine the impact of production planning profitability of an organization; to examine delivery procedures effect on profitability of an organization. The study was carried out on Chandaria Industries Ltd (CIL) located at Baba Dogo in Nairobi, Kenya. Descriptive research design was adopted for this study. The target population consisted of 61 respondents. Census was used to collect information from the entire population. The studycollected primary data. The data was collected using questionnaires. Data for this research was quantitative. Analysis was done using SPSS Version 24. Graphs, tables and pie charts were used to represent the outcomes. The study finding indicated that The study results revealed that 79.6% (mean=3.86) of the respondents were of the view that suitable storage location improves durability. 68.8% (mean=3.44) of the responses were of the opinion that reorder point ensures stock is constant and goods supply is efficiency. 70.8% (mean=3.54) were of the opinion that Delegation of duties in term of specialization ensures smooth production process and finally the study results revealed that 72.4% (mean=3.62) of the respondents were of the view that communication efficiency enhances effective delivery. The study concluded that the basic objective of materials handling is to ensure that the right item is bought and made available to the organization operations at the right time, at the right place and at the lowest possible cost. The study recommended that effective production planning guided by the forces of demand and supply in order to satisfy customer needs. Finally the study recommended formulation of strategic delivery procedures in order to reduce the transportation cost where the study recommended bulk supply of good at a given time to reduce the overall cost.